Sample Uniform Refund Letter Refund Letter by qjo87443

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									                                                                                                                    May 2010


Washington International Insurance Company
(Surety 891)
Letter of Credit Samples and Collateral Release Policy


Typically letter of credit forms are used in cases when a surety company requires additional
underwriting or full collateral for a bond. Though it is important to note that form UCP 600 is the
most widely accepted letter of credit format, form ISF 98 can also be used in cases when it is
preferred by a bond principal or its bank. Provided by Washington International Insurance
Company, please find sample letter of credit forms UCP 600 and ISP 98 for your use on the
following pages.

Banks must be pre-approved by the surety company in order to submit a letter of credit.
Additional underwriting forms must also be submitted.

BOND PRINCIPALS: Please read the last page of this document titled “Collateral Release
Policy”.

Should you have any questions regarding the use of letter of credit forms, please contact your
Roanoke Trade bond representative or call 1-800-ROANOKE.




Baltimore • Boston • Charleston • Chicago • Houston • Los Angeles • Miami • New York • St. Louis • San Francisco • Seattle • Tampa
                                info@roanoketrade.com • 1-800-ROANOKE • www.roanoketrade.com
                                                                                       EXHIBIT A-98

                                 LETTER OF CREDIT (SAMPLE)

(To be typed on Bank Letterhead)


Beneficiary:
Washington International Insurance Company
475 N. Martingale Road, Suite 850
Schaumburg, IL 60173

                                       IRREVOCABLE LETTER OF CREDIT NO.:
                                       DATE:

We hereby irrevocably authorize you to draw on us for account of (name of person or company
arranging for letter of credit) up to an aggregate amount of $___________, United States
currency, available upon presentation of your drafts at sight on or before the expiration date or any
automatically extended expiration date as set forth below.
It is a condition of this Letter of Credit that it shall be deemed automatically extended, without
amendment, for one (1) year from the present or any future expiration date hereof, unless thirty (30)
days prior to any such date we shall notify you in writing that we elect not to consider this Letter of
Credit renewed for any such additional period. Upon receipt by you of such notice you may draw
hereunder, within the then applicable expiration date and for the then available amount, by means
of drafts drawn by you on us at sight, accompanied by your written certification that the bonds or
undertakings executed by you on behalf of (insert name of principal as it appears on the bond)
are still outstanding, that the proceeds of the draft will be retained and applied by you only in
discharge or reimbursement of liability, loss, cost, expense or unpaid premiums as a result of your
execution of such bonds or undertakings, and that in the event your liability under your bonds or
undertakings is satisfied, you will refund to us the amount paid less any amounts which may have
been paid by you in the meantime under your bonds or undertakings and any unpaid premiums due
you on said bonds or undertakings.
We engage with you that all drafts drawn under and in compliance with the terms of this credit will
be duly honored by us if presented at this office on or before ___________________, or any
automatically extended date as herein set forth.

Except so far as otherwise stated, this credit is subject to the International Standby
Practices as set forth in I.C.C. Publication No. 590.

Authorized Signature                                   Authorized Signature




Bank Title                                             Bank Title
                                                                                           EXHIBIT A

                                 LETTER OF CREDIT (SAMPLE)

(To be typed on Bank Letterhead)


Beneficiary:
Washington International Insurance Company
475 N. Martingale Road, Suite 850
Schaumburg, IL 60173

                                       IRREVOCABLE LETTER OF CREDIT NO.:
                                       DATE:

We hereby irrevocably authorize you to draw on us for account of (name of person or company
arranging for letter of credit) up to an aggregate amount of $___________, United States
currency, available upon presentation of your drafts at sight on or before the expiration date or any
automatically extended expiration date as set forth below.
It is a condition of this Letter of Credit that it shall be deemed automatically extended, without
amendment, for one (1) year from the present or any future expiration date hereof, unless thirty (30)
days prior to any such date we shall notify you in writing that we elect not to consider this Letter of
Credit renewed for any such additional period. Upon receipt by you of such notice you may draw
hereunder, within the then applicable expiration date and for the then available amount, by means
of drafts drawn by you on us at sight, accompanied by your written certification that the bonds or
undertakings executed by you on behalf of (insert name of principal as it appears on the bond)
are still outstanding, that the proceeds of the draft will be retained and applied by you only in
discharge or reimbursement of liability, loss, cost, expense or unpaid premiums as a result of your
execution of such bonds or undertakings, and that in the event your liability under your bonds or
undertakings is satisfied, you will refund to us the amount paid less any amounts which may have
been paid by you in the meantime under your bonds or undertakings and any unpaid premiums due
you on said bonds or undertakings.
We engage with you that all drafts drawn under and in compliance with the terms of this credit will
be duly honored by us on delivery of documents as specified if presented at this office on or before
___________________, or any automatically extended date as herein set forth.

Except so far as otherwise expressly stated, this credit is subject to the Uniform Customs and
Practices for Commercial Documentary Credits as set forth in I.C.C. Publication No. 600. If this
Credit expires during an interruption of business as described in Article 36 of said Publication 600,
we hereby specifically agree to effect payment if this Credit is drawn against within 30 days after the
resumption of business.

Authorized Signature                                   Authorized Signature




Bank Title                                             Bank Title
Date:________________

                                 Collateral Release Policy

   1. Collateral is taken to secure any and all risk outstanding at any given time. This may
      include multiple bonds and/or bond periods.

   2. In all instances, collateral will be returned to the bank by the custodian of the
      collateral, via certified mail/return receipt requested or other means requiring
      signature acknowledging receipt.

   3. All collateral releases are subject to each and every one the following general
      requirements, regardless of bond type(s):
          • No past due premiums owed
          • No open claims present
          • No pending litigation
          • No unreimbursed loss activity, cost or expense
          • No claims have been reported for twelve (12) months or, if claims previously
              reported, twelve (12) months following the date that the last claim was
              resolved, whichever is later
          • The principal and indemnitors have fulfilled any/all obligations

   4. The following specific requirements by bond type apply in addition to the foregoing.
      In all instances, timelines shown indicate the earliest point in time when the surety or
      its representatives will consider review of a request to release collateral. These
      timelines do not constitute a guarantee of release of collateral at the conclusion of
      the periods indicated. Surety decisions to release collateral will be based on the
      result of such reviews:
           • C18 & C1A: 180 days after the latest liquidation (or reliquidation) with no
               unliquidated transactions remaining
           • C2: One year after bond termination
           • C3 for NVOCCs: One year after bond termination
           • C3 for air passenger carriers: Two years after bond termination
           • C3 for vessels operators: One year after bond termination or final duty
               payment on any vessel repair entry, whichever is later
           • C3 for non-vessel/non-passenger carriers (AMS filers): 6 months after bond
               termination
           • C3A: One year after bond termination
           • C4: One year after bond termination
           • Carnet: 90 days after the carnet is closed
           • Excise & Misc. Tax: One year after bond termination
           • MTMC: One year after bond termination
           • OTI: One year after bond termination
           • BMC84: One year after bond termination
           • ISF: One year after bond termination
           • ACS (Airport Customs Security) One year after bond termination
           • Misc. Surety L&P: One year after bond termination or after the expiration of
               the contract & bond whichever is later

								
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